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If not a professional, but getting paid, do I have to claim it? If yes, how?
03-08-2007, 03:05 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 1,250
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If not a professional, but getting paid, do I have to claim it? If yes, how?
Here's the lowdown:
My disorganized housemate wants to pay me to organize her office, set up all online bill pay accounts, organize her properties etc... (and get her 2003-06 tax stuff organized to send to her tax professional - yes, it is truly a disaster!) I LOVE this kind of stuff - but could never do it for a living - how do I keep the invoices, etc straight for my tax purposes? Can I sneak it all under the table? Or just have her deduct it off my rent? I am really not sure what the tax ramifications are for this.
Thanks!
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Make no mistake, my friend, it takes more than money to make men rich. - A. P. Gouthey
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Re: If not a professional, but getting paid, do I have to claim it? If yes, how?
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03-08-2007, 03:09 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 2,155
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Re: If not a professional, but getting paid, do I have to claim it? If yes, how?
Did she ever reported to the IRS about paying you for the service?
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Re: If not a professional, but getting paid, do I have to claim it? If yes, how?
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03-08-2007, 03:25 PM
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#3
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,165
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Re: If not a professional, but getting paid, do I have to claim it? If yes, how?
Legally, if she pays you for the service, you should report it as income and pay income taxes on it. That would be true even if she "paid" you by discounting your rent.
Practically speaking, if it's a one time thing or if she pays you cash and she doesn't provide a 1099 to the federal government, you'd likely float under the IRS radar like all the babysitters and lawnmowing kids and all the folks not paying use tax on their internet purchases. Then all you have to consider is your personal ethics and organizational skills in keeping track of the income.
If you're going to do this for a lot of clients or make a lot of money at it, you may want to look at setting up a Schedule C sole proprietorship. Plenty of info out there on the web.
2Cor521
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"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
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Re: If not a professional, but getting paid, do I have to claim it? If yes, how?
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03-08-2007, 03:26 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 1,250
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Re: If not a professional, but getting paid, do I have to claim it? If yes, how?
I have been messing with this for 4 hours since yesterday. Probably another 60 -80 hours or so to go...over a period of 4 weeks...
__________________
Make no mistake, my friend, it takes more than money to make men rich. - A. P. Gouthey
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Re: If not a professional, but getting paid, do I have to claim it? If yes, how?
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03-08-2007, 04:26 PM
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#5
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Recycles dryer sheets
Join Date: Jul 2005
Posts: 423
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Re: If not a professional, but getting paid, do I have to claim it? If yes, how?
I think if it is under $600, it doesn't have to be reported, but going off memory here....
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Re: If not a professional, but getting paid, do I have to claim it? If yes, how?
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03-09-2007, 03:02 PM
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#6
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Recycles dryer sheets
Join Date: Nov 2006
Posts: 77
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Re: If not a professional, but getting paid, do I have to claim it? If yes, how?
If you aren't going to report it, then you probably shouldn't post messages about it on a public website.
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